Homebuilders Start to Look Shaky

After raising the roof for a year, homebuilder stocks could get knocked down in the short run.

With housing starting to climb out of the basement, shares of homebuilders and their supporting industries have soared over the past 12 months. Now, amid signs of sustained improvement in the housing market, these stocks look quite tired with some actually suffering short-term technical breakdowns.

For now, investors who have participated in housing stocks' strong advance should consider cashing in at least some of their profits as these stocks need to work off some of the excesses that built up in their advance. And for...